Which of the Following Best Describes the Make Up of a CDO

question 51

Multiple Choice

Which of the following best describes the make up of a CDO?

• A)A security made up of corporate loans and common equity swaps is called a collateralized debt obligation (CDO).
• B)A security made up of corporate loans and preferred swaps is called a collateralized debt obligation (CDO).
• C)A security made up of corporate loans and credit default swaps is called a collateralized debt obligation (CDO).
• D)A security made up of corporate loans and accounts payable default swaps is called a collateralized debt obligation (CDO).

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Definitions:

Dichromat

A person who is sensitive to black–white and either red–green or blue–yellow and hence is partially color–blind.

Bichromat

An individual with the ability to perceive only two of the three primary colors due to a form of color vision deficiency.

Monochromat

A person who is sensitive to black and white only and hence color–blind.

Sensitization

An increase in responsiveness to a stimulus following its repeated presentation, often leading to the enhancement of a response.